Sell-off in U.S. Treasury bonds despite Trump tariff pause, sparking concerns about market stability.

From Yahoo Finance: 2025-04-09 00:22:00

U.S. Treasury investors faced challenges despite a temporary pause in U.S. tariffs, leading to a sell-off in bonds and questions about their status as a safe asset. Yields on 10-year Treasury notes remained high after Trump’s announcement of a tariff rate increase for China. The market experienced volatility with the largest weekly jump in yields since 2001. The dollar rebounded, and U.S. stocks recovered. Confidence in the U.S. economy was shaken, with concerns about the damage to the U.S. brand.

The market saw a sell-off in Treasuries, reflecting a loss of faith in U.S. assets, according to Deutsche Bank analysts. Despite concerns, trading remained orderly and dislocations had not reached crisis levels. An afternoon auction of 10-year Treasury bonds met market expectations, providing relief. However, uncertainty persisted about the market outlook.

Rising Treasury yields globally raised pressure on central banks to act swiftly to protect economies from slowdowns. The surge in government borrowing costs affected corporate loans and mortgages, impacting businesses and households. The Japanese and British bond yields reached highs, while German bonds remained steady. The market’s volatility has prompted concerns about a longer-term structural shift in global trade flows and foreign buying of U.S. debt.



Read more at Yahoo Finance: US bond rout leaves investors bruised despite Trump pause on tariffs